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Financial Learning Center


Basic Principles of Investing

Deposit Insurance

FDIC Deposit Insurance Coverage Limits
Effective July 21, 2010, the limit for federal deposit insurance coverage was permanently set to $250,000 per depositor. Banks typically offer federally insured accounts for deposits of up to $250,000. You should always check with your financial institution and confirm which of your accounts are FDIC insured, and the account amount that is insured. Credit unions typically offer insurance similar to FDIC, called National Credit Union Share Insurance Fund (NCUSIF).

Single Accounts
These are deposit accounts owned by one person and titled in that person's name only. All of your single accounts at the same insured bank are added together and the total is insured up to the FDIC insurance limit. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $250,000.
Note: Retirement accounts and qualifying trust accounts are not included in this ownership category.

Certain Retirement Accounts
These are deposit accounts owned by one person and titled in the name of that person's retirement plan. Only the following types of retirement plans are insured in this ownership category:

  • Individual Retirement Accounts (IRAs) including traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plans for Employees (SIMPLE) IRAs
  • Section 457 deferred compensation plan accounts (whether self-directed or not)
  • Self-directed defined contribution plan accounts
  • Self-directed Keogh plan (or H.R. 10 plan) accounts

All deposits that an individual has in any of the types of retirement plans listed above at the same insured bank are added together and the total is insured up to $250,000. For example, if an individual has an IRA and a self-directed Keogh account at the same bank, the deposits in both accounts would be added together and insured up to $250,000.

Naming beneficiaries on a retirement account does not increase coverage.

Joint Accounts
These are deposit accounts owned by two or more people. If both owners have equal rights to withdraw money from a joint account, each person's shares of all joint accounts at the same insured bank are added together and the total is insured up to $250,000.

If a couple has a joint checking account and a joint savings account at the same insured bank, each co-owner's shares of the two accounts are added together and insured up to $250,000, providing up to $500,000 in coverage for the couple's joint accounts.

Example: John and Mary have a $520,000 CD at an insured bank. Under FDIC rules, each person's share of each joint account is considered equal unless otherwise stated in the bank's records. John and Mary each own $260,000 in the joint account category, putting a total of $20,000 ($10,000 for each) over the insurance limit.

Account Holders

Ownership Share

Amount Insured

Amount Uninsured

John

$ 260,000

$ 250,000

$ 10,000

Mary

$ 260,000

$ 250,000

$ 10,000

Total

$ 520,000

$ 500,000

$ 20,000

Note: Jointly owned qualifying trust accounts are not included in this ownership category

NOTE: certificate of deposits are FDIC-insured when issued by your bank or depository institution.

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Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window).  UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.